D.C.I.T CC - XX,KOLKATA, KOLKATA vs. M/S HIMADRI DYES & INTERMEDIATES LTD, KOLKATA

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ITA 916/KOL/2013Status: DisposedITAT Kolkata16 December 2015AY 2007-084 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the order of the CIT(Appeals) and confirmed the deletion of the addition. The Tribunal followed its previous order on the same issue.

What were the facts?

The Assessing Officer disallowed a loss claimed by the assessee in share trading amounting to Rs. 26,13,600/-. The CIT(Appeals) deleted this addition. The Revenue appealed this deletion.

What were the issues?

Whether the disallowance of loss in share trading by the Assessing Officer was justified. Whether the CIT(Appeals) was correct in deleting the addition.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 153C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH, KOLKATA

Before: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi

Per Shri P.M. Jagtap:- This appeal is preferred by the Revenue against the order of ld. Commissioner of Income Tax (Appeals), Central-III, Kolkata dated 17.12.2012 for the assessment year 2007-08 and the solitary issue raised therein relates to the deletion by the ld. CIT(Appeals) of the addition of Rs.26,13,600/- made by the Assessing Officer on account of disallowance of assessee’s claim for loss in share trading.

2.

The assessee in the present case is a Finance and Investment Company. In the assessment originally completed under section 143(3) vide order dated 30.12.2009, the total income of the assessee was ./2013 Assessment year: 2007-2008 Page 2 of 4 determined by the Assessing Officer at Rs.86,29,920/- after making certain additions including the addition of Rs.26,15,600/- made by way of disallowance of assessee’s claim for loss in share trading. Meanwhile a search was conducted under section 132 in Himadri Group of Industries on 12.06.2008, during the course of which certain documents pertaining to the assessee were found and seized. Consequently a notice under section 153C was issued by the Assessing Officer to the assessee and in pursuance thereof assessment under section 143(3) read with section 153C was completed by the Assessing Officer vide order dated 31.12.2010 assessing the total income of the assessee at Rs.87,78,440/- after making, inter alia, all the additions made in the assessment originally completed under section 143(3) including the addition of Rs.26,15,600/- by way of disallowance of loss claimed by the assessee in share trading.

3.

Against the order passed by the Assessing Officer under section 143(3) read with section 153C, an appeal was preferred by the assessee challenging, inter alia, all the additions originally made by the Assessing Officer in the assessment under section 143(3) and repeated in the assessment completed under section 143(3) read with section 153C including the addition of Rs.26,15,600/- on account of disallowance of assessee’s claim for loss from share trading. Meanwhile the appeal filed by the assessee against the order of the Assessing Officer under section 143(3) came to be disposed of by the ld. CIT(Appeals) vide his appellate order dated 26.06.2012 whereby he deleted inter alia the addition made by the Assessing Officer by disallowing the assessee’s claim for loss in trading of shares. Since the same issue was involved in the appeal of the assessee filed against the order of the Assessing Officer under section 143(3) read with section 153C, the ld. CIT(Appeals) followed his decision rendered by the order dated 22.06.2012 and deleted the addition of Rs.22,15,600/- made by the Assessing Officer by way of disallowance of the assessee’s claim for loss in share trading. Aggrieved by the order of the ld. CIT(Appeals), the Revenue has preferred this appeal before the Tribunal. ./2013 Assessment year: 2007-2008 Page 3 of 4

4.

We have heard the arguments of both the sides and also perused the relevant material available on record. As submitted by the ld. Counsel for the assessee, the order of the ld. CIT(Appeals) dated 22.06.2012 disposing of the appeal of the assesese filed against the order of the Assessing Officer under section 143(3) was also challenged by the Revenue in the appeal filed before the Tribunal disputing, inter alia, the deletion by the ld. CIT(Appeals) of the addition of Rs.26,13,600/- made by the Assessing Officer by way of disallowance of assessee’s claim for loss in share trading and the Tribunal vide its order dated 21.11.2013 passed in has upheld the order of the ld. CIT(Appeals) giving relief to the assessee on this issue.

5.

Since the same issue is involved in the present appeal emanating from the order passed by the Assessing Officer under section 143(3) read with section 153C, we find that the issue involved in this appeal is squarely covered in favour of the assessee by the order of the Tribunal dated 21.11.2013 and this position has not been disputed even by the ld. D.R. We, therefore, respectfully follow the said order of the Tribunal and uphold the impugned order of the ld. CIT(Appeals) deleting the addition of Rs.26,13,600/- made by the Assessing Officer by way of disallowance of assessee’s claim for loss in share trading.

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